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PlayPennsylvania.com: Sportsbooks, online casinos post near-record September

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Betting volume at Pennsylvania’s online and retail sportsbooks in September was the second-most all-time for the state, nearly hitting $580 million for just the second time. A spike in interest was inevitable during the first full month of football, but the surge in both sports betting and online casino gambling — which produced more than $110 million in revenue — is indicative of an industry that continues to grow and mature, according to PlayPennsylvania, which tracks regulated online gaming and sports betting in the state.

“Nothing stirs the sports betting drink like football, even when the Steelers and the Eagles get off to slow starts,” said Katie Kohler, analyst for PlayPennsylvania.com. “Penn State made a difference in boosting interest, which certainly helps. The bottom line is every sportsbook wants a strong start to the football season, and that is exactly what Pennsylvania’s industry got in September.”

Pennsylvania’s online and retail sportsbooks drew $578.8 million in wagers in September, according to official data released Tuesday. September’s volume was up 25.1% from $462.8 million in September 2020 and up 66.1% from $348.5 million in August. 

Gross sports betting revenue nearly hit an all-time high, falling just short of the record $49.3 million in revenue generated in January. Operators generated $48.1 million in gross revenue in September, up 163.2% from $18.3 million in September 2020 and up 90.1% from $25.3 million in August. That created $28.3 million in taxable revenue, generating $10.2 million in state taxes and local share assessments.

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Growth has been relentless since legal sports betting launched in Pennsylvania in 2018, and it has only accelerated this year. Through the first nine months of 2021, bettors have placed $4.3 billion in wagers, or 45.6% of the $9.4 billion wagered in Pennsylvania since sports betting opened in November 2018. Operators have generated $340.4 million in gross sports betting revenue this year on those bets, or 47.0% of the $724.5 million in revenue produced since sports betting began.

“Pennsylvania’s sportsbooks are in a position to generate more in wagering this fall than the $1.5 billion that was bet in all of 2019,” said Dustin Gouker, analyst for the PlayUSA.com Network, which includes PlayPennsylvania.com. “The industry will in all likelihood continue to grow in the months ahead, gaining steam in October with baseball’s postseason and the opening of the NBA season. Sports betting should produce some eye-popping numbers over the next few months.” 

Online sportsbooks accepted $527.4 million in wagers in September, representing 91.1% of the state’s total handle. FanDuel claimed 34.8% of the online market with $183.7 million in wagering, up from $135.7 million in August. Revenue rose to $21.2 million in September from $5.7 million in August, which produced $5.0 million in state and local taxes. DraftKings was second with $164.7 million in wagers, capturing 31.2% of the online market. Those bets yielded $5.1 million in gross revenue.

Penn National’s Barstool-branded app celebrated its first anniversary by attracting $52.8 million in wagers in September, the third-most in the state. Those bets produced $2.6 million in gross revenue. Since launching in September 2020, the Barstool app has generated $52.9 million in revenue on $647.7 million in bets.

The online leaders were followed by:

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  • BetMGM ($50.7 million handle, up from $28.4 million in August; $5.6 million GGR, up from $2.6 million)
  • BetRivers ($19.8 million handle, up from $13.2 million; $3.0 million GGR, up from $882,274)
  • Fox Bet ($15.2 million handle, up from $8.6 million; $1.2 million in GGR, up from $749,103)
  • SugarHouse ($13.5 million handle, up from $10.3 million; $1.2 million in GGR, up from $692,350)
  • Parx Casino ($12.0 million handle, up from $6.4 million; $1.0 million GGR, up from $713,282)
  • Unibet ($7.3 million handle, up from $4.2 million; $511,171 GGR, up from $307,601)
  • TwinSpires ($3.5 million handle, up from $2.3 million; $307,518 GGR, up from $147,448)
  • Caesars ($2.4 million handle, up from $1.2 million; $219,829 GGR, up from $73,785)
  • Betway ($1.0 million handle; up from $617,954; -$23,818 GGR, down from $18,818)
  • Wind Creek ($921,828 handle, up from $521,601; $57,873 GGR, down from $78,195)

“Barstool hasn’t quite achieved the ‘world domination’ that founder Dave Portnoy proclaimed with the app launched, but it has performed well,” Gouker said. “No operator has seriously challenged the dominance of FanDuel and DraftKings yet. But Barstool has at least proven to be an important player in Pennsylvania.”

Retail sportsbooks drew $51.3 million in wagers in September, up from $48.7 million in September 2020 and from $30.4 million in August. Those wagers created $7.2 million in gross sports betting revenue, up from $5.1 million September 2020 and $3.3 million in August. Rivers Pittsburgh topped the retail market with $7.9 million in bets, topping Rivers Philadelphia’s $7.1 million handle.

Online casinos and poker

Online casinos and poker rooms produced $111.8 million in gross gaming revenue, the second-most all time in Pennsylvania and the seventh consecutive month with gross gaming revenue over $100 million. September’s revenue was up 61.3% from $69.4 million in September 2020 and up 8.4% from $103.2 million in August. The monthly revenue record for online casinos and poker is $113.8 million, set in May.

The win was whittled to $97.8 million in taxable revenue, which yielded $41.7 million in state and local taxes. Wagering at online casinos hit $3.5 billion in September, up from $3.2 billion in August.

“Online casinos have a symbiotic relationship with online sportsbooks,” Kohler said. “When sportsbooks do well it tends to lift the fortunes of online casinos, and vice versa. We saw that in action in September.”

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Other highlights from September:

  • Online casino and poker rooms generated $3.7 million in gross gaming revenue per day over the 30 days of September, up from $3.3 million per day in August.
  • Penn National, which includes the DraftKings, BetMGM, Barstool, and Hollywood casinos, topped the market with $43.0 million in gross revenue. Rivers Philadelphia, which includes SugarHouse, Borgata, and BetRivers casinos, was second with $31.1 million.
  • Poker generated $2.9 million in revenue. Mount Airy/PokerStars topped operators with $2.0 million in revenue.

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AGCO: Casino Days Penalized $54,000 for Deceptive and High-Risk Bonus Offer

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The Alcohol and Gaming Commission of Ontario (AGCO) has issued a $54,000 monetary penalty alleging Well Played Media, Unipessoal LDA promoted a deceptive bonus on its Casino Days website. The bonus offer is alleged to have encouraged high-risk behavior and failed to properly disclose key terms.

The AGCO launched an investigation triggered by a player who complained that more than $8500 in winnings had been confiscated by Casino Days. The investigation reviewed a so-called “welcome bonus” that promised new players up to $2000.

However, to qualify for the full bonus amount, players had to:

Deposit $2000 of their own money;

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Wager $70,000 (35 times the deposit);

Keep each wager at or under $5; and

Complete all wagering requirements within 7 days.

Investigators also found that certain terms of the bonus offer were difficult to find, buried behind multiple links on the site.

AGCO’s analysis showed that the average player would first lose $3640 trying to earn the $2000 bonus.

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According to Ontario’s igaming rules, registered operators must not offer bonus promotions that encourage harmful gambling behavior and fail to disclose key conditions appropriately. Further, operators are not permitted to entice players with bonuses that cannot reasonably be attained without significant gambling losses.

These rules are in place to protect players and support a safe, regulated market—one that stands in contrast to the risks of unregulated gambling sites.

An igaming operator served with an Order of Monetary Penalty by the AGCO Registrar has the right to appeal the Registrar’s decision to the Licence Appeal Tribunal (LAT), an adjudicative tribunal that is part of Tribunals Ontario and independent of the AGCO.

“Player protection is a non-negotiable priority for the AGCO. We expect operators to be truthful and transparent about their promotions, and we also require them to ensure that those promotions do not encourage reckless or harmful patterns of play. An offer that requires a player to sustain substantial losses for a perceived benefit is not a fair offer. This penalty sends a clear signal that we will not hesitate to take action against operators who fail to meet their obligations to protect Ontario players,” Dr. Karin Schnarr, Chief Executive Officer and Registrar of AGCO.

The post AGCO: Casino Days Penalized $54,000 for Deceptive and High-Risk Bonus Offer appeared first on Gaming and Gambling Industry in the Americas.

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What’s next for online gambling in Canada?

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Having provided the perfect case study for the benefits of legalised online gambling in Canada, we caught up with Bede’s Chief Executive Officer, Colin Cole-Johnson, to discuss why other provinces may look to follow Ontario’s example in the future and what challenges operators will need to be ready for when they do.

With the regulated online gambling market in Ontario recently being recognised as one of the largest in the world, operators will feel there’s plenty of untapped potential to be realised not just in the province itself, but in Canada as a whole, over the coming months. And for good reason too.

Since legalising online gambling in 2022, the Alcohol and Gaming Commission of Ontario (AGCO) has established a go-to framework for how regulators introduce rules and standards that protect players and enable operators to flourish – and no better is this illustrated than in the performance of the Ontario Lottery and Gaming Corporation (OLG), which has continued to make a hugely positive contribution in the province over the past few years.

Having already paved the way for successful open market regulation through a number of progressive initiatives, with even more yet to come – such as the proposed centralised self-exclusion model –  it certainly wouldn’t be a surprise to see other organisations turn to AGCO as an example of how regulations can be introduced both sustainably and profitably; and this will likely present several opportunities for operators as well.

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From Bede’s experience in the country, Canadian regulators are thorough and well organised. Any province looking to follow the success of Ontario will no doubt look to AGCO for inspiration, and this may lead to similar regulatory frameworks in other new territory launches. As the gaming community in Canada is so connected, we’ve already seen cross-operator interest in sharing regulatory knowledge, meaning there’s a wealth of information waiting to be leveraged.

As the most likely province to regulate next, Alberta has already shown a preference for following an open-market model similar to Ontario’s, with the input of various industry stakeholders set to guide the way. The onboarding process for operators seeking to enter this potentially vibrant new market is likely to follow promptly after the new framework is enacted, so existing experience and relationships within the Ontario market should prove advantageous for those looking to hit the ground running.

For Bede, our years working closely with AGCO leave us well positioned to enter additional provinces in the future, and we greatly value the guidance and support we gain from having a direct relationship with the regulator. We aspire to grow even further in Canada by forming more provincial partnerships, and our learnings from Ontario will undoubtedly form a key part of this.

Internally, we have a strong framework for new market entry and regulatory compliance that includes cross-functional representation across the business. We understand the heavy lifting that goes into a launch and the complexity of licensing and delivering a new technical solution. Our approach always involves an analysis of the requirements from a compliance, risk, audit and financial perspective, as well as identifying any gaps where our products can make an impact with the right strategic solutions.

Taking the Ontario market as an example, we’ve seen some noticeable changes in player behaviour in recent years, meaning operators must be prepared to adapt in order to keep up with emerging trends. Although we’ve seen growth for our partners in the digital space, retail remains a predominant revenue stream for Canadian operators. As digital continues to grow, it’s important to provide a seamless end-to-end experience for players across channels, to be effective omni-channel solutions.

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As more choice becomes available in the market, offering competitive payment and withdrawal options will be important. A critical part of the player journey that is often overlooked is the preference among players for easy access to preferred payment methods. A great example of innovation in this area is our Lottery Direct Pay method, where players can purchase tickets directly from their card without first having to load their wallet – creating a faster user journey that appeals to a wider audience.

Aside from these payment considerations, it’s worth noting that community engagement features and personalisation are both playing a more prominent role in the Canadian gaming landscape. Particularly among younger audiences, having the ability to offer a shared experience is becoming increasingly important to generating sustained engagement. For example, we’ve already seen OLG enjoy a significant uplift in overall ticket sales since launching the innovative Lottery Group Play tool.

Similarly, the power of personalisation cannot be understated when it comes to building player activity and retention. Through partnerships with companies such as XtremePush and Future Anthem, Bede has endeavoured to utilise more machine learning and AI systems that can broaden the customisation options available for customers, while our dynamic segmentation tool enables them to target user groups more effectively and automate the player journey in real time.

Of course, from the moment Ontario launched a legalised online gambling framework, regulators were required to focus their efforts on keeping up with increased accessibility and, therefore, increased risk of harm to the public. Should another province like Alberta also legalise online gambling in future, the same challenges will exist – and this presents an important opportunity for operators to both educate players on responsible gaming protocol and enforce it.

Given Bede has been operating in highly regulated markets for over 13 years, we have both an established suite of RG tools and in-depth knowledge of how to use them effectively. Evidenced in the UK market and beyond – Bede has developed its platform to meet the tightening controls that have been issued over every aspect of online gambling – enabling operators to create their own tailored mix of tools that best support their players.

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Notably, the upper limit functionality in our RG toolset gives our customers the option to monitor and respond to potential problem behaviour by setting maximum limits for specific players. The players may opt to further decrease their own limits, but they’ll be unable to exceed the maximum setting until/unless the operator removes them, reducing the harm they could potentially experience. As well as outright prevention, being able to educate a player in such a moment is equally important – and using our platform, operators can send appropriate, personalised messages to users that encourage them to alter their play and even think about setting time out periods where necessary. For example, our partners can use our Player Interaction feature to set alerts from the front end based on pre-defined player behaviours, and then use that information for RG activities; if a player returns to a page a certain number of times, it can automatically trigger personalised messages to encourage the player to set a limit.

As responsible gaming is a constantly evolving topic in Ontario and other new markets in Canada are likely to experience similar growing pains, supporting regulatory efforts through the smart adoption of harm prevention tools will be a key part of gaining a foothold. This, coupled with the other regional considerations we’ve outlined in this article will be crucial to any operator’s future success in the country; and there are definitely big opportunities on offer for those who get it right.

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Thunderkick’s portfolio makes Ontario debut through SkillOnNet brands

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Global entertainment brand SkillOnNet is deepening its existing partnership with Stockholm-based game studio Thunderkick to launch the developer’s unique, engaging slot titles in Ontario.

The Canadian province is one of the most exciting regulated markets in North America, and the Ontario players will now gain access to Thunderkick’s full portfolio of highly acclaimed games via SkillOnNet-powered online casino brands such as PlayOJO, SlotsMagic, and SpinGenie.

Thunderkick is known for its independent, boundary-pushing slot games like Pink Elephants, Esqueleto Explosivo, and Beat the Beast and has established a strong reputation for creativity and originality in the iGaming space. The deal allows the studio to further expand its global footprint while giving Ontario players the chance to enjoy a fresh wave of premium content.

Ontario’s regulated online gaming market, which officially opened in 2022, has quickly become a key market for the iGaming industry, and SkillOnNet was among the first brands to secure licensing in the province. The expansion reinforces SkillOnNet’s commitment to delivering top-tier entertainment in regulated markets globally.

Jani Kontturi at SkillOnNet said: “Thunderkick has been a key partner of ours in other markets, and we’re delighted to bring their outstanding content to Ontario. This region is fast becoming a vital part of our operations, and we’re confident players here will respond just as positively to Thunderkick’s games as they have elsewhere.”

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Mariam Dodosh, Account Manager at Thunderkick said: “We’re thrilled to expand our relationship with SkillOnNet and enter the Ontario market together. Our games have a track record of strong performance, and we’re excited to see them go live in one of the most dynamic new regions in iGaming.”

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